Brazil's middle class continues to swell

15/08/2012

Brazil's middle class has grown substantially over the past decade, with an estimated 40 million people having joined its ranks between 2003 and 2011.

This figure comes from the Fundacao Getuilo Vargas economic think tank, which has taken note of the purchasing power that this group of people has bought to Brazil.

It defines the middle class as Class C and states that it includes households with monthly incomes of between $600 and $2,590. Just 45 million fell into this bracket in 1993 but by 2011 this had swollen to over 105 million, accounting for around 46 per cent of the country's buying power.

In the past, the country had been known for its stark dividing line between the very rich and the very poor. This limited its economic potential, but things are changing and businesses are capitalising on this evolution within Brazilian society.

All sorts of businesses are starting to expand their products and services to include the middle classes. Dentists, gyms and beauty products are seeing good levels of growth, as is the technology sector with more people buying phone and laptops than before.

Investors are jumping on this growth and as Brazil's middle class starts to benefit from the economic situation so investors will benefit from their expansion.